Competition Law at Taiwan
Absolutely! Here’s an overview of Competition Law in Taiwan:
Competition Law in Taiwan
1. Legal Framework
Taiwan’s competition law is mainly governed by the Fair Trade Act (FTA), first enacted in 1991 and continuously amended to strengthen enforcement. The Act aims to promote fair competition, protect consumer interests, and ensure economic efficiency.
2. Regulatory Authority
The Fair Trade Commission (FTC) is the independent government agency responsible for enforcing the Fair Trade Act.
The FTC investigates anti-competitive conduct, reviews mergers, and imposes penalties.
3. Key Provisions
a) Prohibition of Monopoly and Monopolistic Practices
The Act prohibits monopolistic behaviors, including:
Abuse of market dominance (e.g., predatory pricing, refusal to deal, discriminatory pricing).
Acts that restrict competition or control prices.
b) Prohibition of Unfair Competition
Agreements or concerted actions that restrict competition, such as price fixing, market division, bid-rigging, and group boycotts, are prohibited.
Both horizontal and vertical restraints are regulated.
c) Merger Control
The FTC reviews mergers and acquisitions that may substantially lessen competition.
Notification is required for mergers meeting certain turnover thresholds.
The FTC can approve, impose conditions, or prohibit transactions.
d) Unfair Trade Practices
The Act includes provisions against deceptive or unfair business conduct affecting consumers or competitors, overlapping somewhat with consumer protection.
4. Enforcement and Penalties
The FTC has investigative powers, including inspections and requesting information.
Penalties include fines, cease and desist orders, and corrective measures.
Severe violations may result in significant fines or criminal sanctions.
5. Recent Trends
Taiwan has actively modernized its competition law enforcement to align with international best practices.
The FTC has increased focus on digital economy issues and anti-competitive behavior in tech sectors.
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